World War II as an equalizer:
Local labor market effects of a demand shock to low skilled workers

Ran Abramitzky, Eirik Berger and Kjell Gunnar Salvanes

14.4.2020

Project Motivation: World war II


Unemployment disappeared

1940 1941 1942 1943 1944 1945
Men 30,853 15,627 3,537 282 160 7,968
Women 5,949 4,537 1,598 186 87 449
Total 36,802 20,164 5,135 486 247 8,417

Project Motivation: Huge drop in income inequality


Source: Atkinson et al., 2018


This paper: How did demand shocks to local labor markets affect income inequality?

Who benefited from the war?


Source: Atkinson et al., 2018


German building Projects

The following projects have been identified so far:



Bulding Projects: Coastal artillery

Bulding Projects: Industry

Bulding Projects: Airports

Look at local labor markets (20 km radius as example)